The Employees’ Pension Scheme (EPS), launched in 1995 and commonly known as EPS-95, was designed to provide a reliable post-retirement income to employees in the organized sector. Administered by the Employees’ Provident Fund Organisation (EPFO), the scheme currently offers a minimum monthly pension of ₹1,000 to members who have contributed for at least 10 years. This threshold, introduced in 2014, has remained unchanged for over a decade despite a substantial rise in inflation and cost of living.
Now, after persistent demands and policy reviews, there are strong indications that the government may soon revise this minimum pension, possibly increasing it to ₹7,500 per month.
Why a Pension Revision is Long Overdue
Over the past several years, pensioners, labour unions, and advocacy groups have consistently raised concerns about the inadequate pension under EPS-95. A monthly pension of ₹1,000 is widely considered insufficient to meet even the most basic needs in today’s economy. Rising expenses for healthcare, food, rent, and utilities have left many pensioners financially vulnerable.
Trade unions have long demanded that the minimum monthly pension be increased to ₹7,500. Along with this, they are also calling for the inclusion of Dearness Allowance (DA) to help mitigate the impact of inflation, similar to benefits enjoyed by regular government pensioners.
Third-Party Review Initiated for EPS Overhaul
In a major development, the Parliamentary Standing Committee on Labour, chaired by BJP MP Basavaraj Bommai, has recommended a comprehensive third-party evaluation of the EPS. This marks the first time in the scheme’s history that an independent review is being conducted to assess its structure, sustainability, and potential for revision.
The Ministry of Labour and Employment has already issued a Request for Proposal (RFP) to appoint an expert agency for this evaluation. The committee has asked for the report to be submitted by the end of 2025 to help guide the policy revamp process.
Key Issues Identified by the Panel
The parliamentary panel’s report has highlighted that while consumer prices have risen dramatically since 2014, EPS pensions have remained stagnant. Below is a comparison of essential cost categories over the past decade:
| Category | 2014 Avg Cost (₹) | 2024 Avg Cost (₹) | % Increase |
|---|---|---|---|
| Monthly Groceries | 3,000 | 6,500 | 117% |
| Basic Healthcare | 1,500 | 4,000 | 167% |
| House Rent (Urban) | 4,000 | 8,000 | 100% |
| Utilities (Electricity, Water, Internet) | 1,200 | 2,500 | 108% |
These rising costs, coupled with the fixed pension amount, have pushed many retirees into financial distress, making pension revision an urgent need rather than a mere policy preference.
Past Government Efforts and Current Position
In 2020, the Labour Ministry had proposed increasing the minimum pension to ₹2,000 and forwarded the suggestion to the Finance Ministry. However, the proposal did not receive approval. The issue resurfaced during the Union Budget 2024-25 discussions, when a delegation of EPS-95 pensioners met Finance Minister Nirmala Sitharaman under the EPS-95 National Agitation Committee.
The pensioners reiterated their long-standing demand for a ₹7,500 pension with DA benefits. While the Finance Minister assured them that their concerns would be evaluated seriously, no formal decision has yet been communicated.
What Could Change: EPS Proposals vs. Existing Provisions
| Criteria | Current Provision | Proposed by Unions | Remarks |
|---|---|---|---|
| Minimum Monthly Pension | ₹1,000 | ₹7,500 | Last revised in 2014 |
| Dearness Allowance (DA) | Not Applicable | Demanded | To counter inflation |
| Years of Service Required | 10 years | No change proposed | Minimum eligibility remains the same |
| Third-party Review | Not conducted before | Now initiated | First review in nearly 30 years |
| Budgetary Allocation | Limited | Likely to increase | Depends on evaluation outcome |
Next Steps and Expected Timeline
Although no official announcement has been made as of May 2025, several indications suggest that policy changes are in motion:
- Q2 2025: Appointment of third-party evaluators
- Q3-Q4 2025: Comprehensive scheme evaluation and stakeholder consultation
- Early 2026: Submission of findings and potential announcement of revised pension
The outcome of the third-party review will play a crucial role in shaping the future structure of the EPS and determining whether the pension hike to ₹7,500 is financially feasible.
Potential Impact on Pensioners and Economy
A revision in the EPS pension would significantly improve the quality of life for millions of senior citizens. Moreover, it could also have a broader economic impact:
- Boost in Consumption: Increased disposable income for retirees could translate into higher spending in local economies.
- Improved Healthcare Access: A higher pension would allow better affordability of medical treatments and insurance premiums.
- Social Equity: Ensuring financial dignity in old age would enhance the overall welfare system and reduce dependency on state subsidies.
Conclusion
The Employees’ Pension Scheme (EPS-95) is in urgent need of reform. The current ₹1,000 minimum pension no longer aligns with economic realities, especially as inflation continues to strain household finances. The government’s decision to commission a third-party evaluation signals a willingness to revisit and potentially restructure the scheme. If the review supports the demands of trade unions and pensioners, India may finally witness a long-awaited and much-needed revision to EPS-95.
Until then, pensioners and stakeholders are advised to closely monitor updates from the Ministry of Labour and EPFO for any official developments.
FAQs
What is the current minimum pension under EPS-95?
The current minimum monthly pension is ₹1,000 for eligible members who have contributed for at least 10 years.
What changes are being proposed?
Unions are demanding a minimum pension of ₹7,500 along with DA benefits to offset inflation.
Has the government approved any EPS Pension Hike yet?
As of May 2025, no official approval has been granted, but a third-party evaluation has been initiated to explore the feasibility.
Will Dearness Allowance (DA) be added to EPS pensions?
Currently, DA is not included. However, pensioners are demanding its inclusion as part of the proposed reform.
Who is conducting the review of EPS-95?
The Ministry of Labour has invited proposals from independent agencies to carry out the first-ever third-party evaluation of EPS-95.
It will help to all EPF retired people including myself increasing of living expenses. Thanks to all efforts taken in this regard.
It will help to all EPF retired people including myself increasing of living expenses. Thanks to all efforts taken in this regard.
Daily press/media notification to the retirees is rhetoric or real is unknown. Most pensioners who retired in 1995 crossed the age of 85yrs. Some are alive but many are dead in the process of waiting for it.
We expect the min̈imum pension hike ₹7500 with D.A to existing cost of living
It is life saving for us by the govnment.
I’m also a pension holder. However,this minimum amount of pension can’t secure me and my family.Its very difficult to meet our daily requirements.It can’t promise me a financial stability to bear health facilities, electricity bill and my ward’s education. In spite of serving tirelessly for the last 30 years in private concern, this is what I receive in return.Its really becoming a challenge for us to survive with this burden of poverty . Hence it’s my earnest request to the sensible government to increase the pension range as early as possible according to our demand.
It is a great Relief and good News to Pensioners if there is Hike in the Monthly Pension from Rs 1000 To Rs 7500 + DA;
Respected Dahila you have sent Good News, I have retired from a Private Sector Company, thank you very much.
Satisfied
Our respected Prime minister is very democratic and has a strong will power and he increased the personal tax limit from 5 lakh to 12 lakh, which was a long awaited demand of salaried persons and he did it and surprised to everyone by increasing 240% . I am hopeful for similar act in EPS also &I guess he will increase it to 10 thousand pus DA along with medical care. Seniors &specially super seniors will bless him to remain in the capacity for decades.
It will be work as life saving drug to poor and old age pensioners and families,
It should implement without any further delay,
Dear Sir, My wife who took voluntary retirement after putting nineteen years in s CBSC school in Chennai, on 31.10.2003 has been receiving only Rs.750/-, even though the minimum pension amount was enhanced Rs.1,000/- after 2014. In this circumstances, whether she will be eligible to get the recent hike of Rs. 7,500/- as per supreme court order and approved by Central Government. Will you please enlighten me and my wife in this respect. Thanking you, V. RAMAMOORTHY & SHANTHA
My wife by name Shantha Ramamoorthy took voluntary retirement during October 2003, and getting a pension of Rs.750/-only all along, inspite of the enhanced pension of Rs.1,000/-during 2014. I would like to know whether She is applicable for the revised pension amount of Rs.7,500/-,As per announcement by Government of India recently. Please enlighten our eligibility to confirm that the revision of pension will be paid in accordance with the date from which it’s being implemented. V. Ramamoorthy, Chennai
It will be a great help to the people who are struggling to survive without adequate financial resources, support and care for themselves , hence it should be implemented immediately by the present government and help the people.
Thanks to Hon’ble Prime Minister and the Finance Minister. It is a long awaited demand from poor Senior Citizens. Once again Thanks to the Central Government headed by NAMO.
It is life line decesion of Minimum pension to 7500 from 1000rupee. Now it will cover the day to day cost like medicine purchase , essential commodities,marriage of daughter.
Govt. Historical decesion opted
Thanks to Central govt